Standard CIT 25% (15% in Hainan/Lingang/Qianhai/western zones for qualifying sectors; HNTE and small-profit rates lower); VAT 13%/9%/6%; dividends to foreign parents 10% WHT reduced to 5% with treaty substance; foreign staff IIT progressive to 45% with invoice-based allowances.
Corporate Income Tax (CIT)
Standard 25%. Real reductions: 15% in Hainan FTP (encouraged industries through 2035), Lingang and Qianhai (sector lists, substance required); High-New-Tech Enterprise 15% with IP/R&D tests; small low-profit effective 5% on first RMB 3m; R&D super-deduction 100% extra deduction; western development 15%.
VAT
13% goods, 9% transport/construction, 6% services. General taxpayer status is essential for B2B (customers need your special fapiao) and imports (creditable customs VAT). Exports: zero-rated with rebates (commonly 13% for manufactures) — trading WFOEs claim via the rebate system.
Dividends & treaty planning
10% standard WHT; 5% under the HK arrangement and several treaties with ≥25% holding, annual TRC, and real substance — the Principal Purpose Test and Announcement 9 deny shells. The reinvestment incentive can refund/credit the WHT on profits reinvested into encouraged scope (decide before distribution).
Individual Income Tax for foreign staff
3-45% progressive; residents (183+ days) taxed on worldwide income with the six-year rule for global income; housing/education/relocation allowances reimbursable against fapiao; annual reconciliation March-June.
Calendar (the part everyone underestimates)
Monthly: VAT + IIT. Quarterly: CIT prepayment. Annually: audit, CIT reconciliation (May 31), AIC annual report (June 30), individual reconciliation (June 30). Missing any of these compounds into exit-blocking debt — the retainer exists precisely for this.
One partner for the whole journey
Zhonghui Consulting — licensed, fixed-fee, English-speaking. cross-border compliance engagements, ICPA-reviewed.
See All Services & Pricing → Free AI Entry CheckGeneral information only — not legal, tax, or immigration advice. Rules change; verify with official sources (SAMR, STA, SAFE, MOFCOM, NIA) and licensed advisors before acting.